A sharp wave of foreign investor withdrawals from Sri Lanka’s Colombo Stock Exchange signals shifting global sentiment, even as key market indices show surprising resilience and local economic momentum keeps the market afloat.
Foreign investor activity in Sri Lanka’s Colombo Stock Exchange drew attention after Ambion Securities Company Limited released its latest market report noting a noticeable rise in overseas capital outflows during February 2026 period.
According to the Ambion Securities analysis, a total of Rs. 9,358.49 million in foreign portfolio investment moved out from the Colombo Stock Exchange throughout February alone. What makes the trend striking is that overseas investors pulled funds on almost every trading day except two sessions.
As a result the value of foreign investment outflows during the first two months of 2026 January through the end of February stands at Rs. 16,145.75 million.
Even with continued foreign investor withdrawals a modest rise was seen in the market indices during February.
The Share Price Index ASPI recorded an increase of 0.22 percent while the S&P Sri Lanka 20 Index rose 0.59 percent.
The report explains that the improvement in these indices was linked to several positive economic developments that occurred during the month of February. During the period prices of 7 listed sectors advanced while prices of 13 sectors declined.
The average daily turnover for February was recorded at Rs. 5,616 million. This represents a decline of 21 percent compared with the turnover of Rs. 7,095 million reported in January. However the average daily turnover recorded so far in 2026 stands at Rs. 6,356 million Ambion Securities noted.
